BOSTON–(BUSINESS WIRE)–State Street Corporation (NYSE: STT) today announced the launch of State Street VerusSM, a mobile app that connects news coverage to investor holdings through the application of big data, machine learning, natural language processing and human intelligence. Verus is designed to help front office investment professionals gain better insights, mitigate risk and generate alpha.
“About 150,000 articles are generated every week on business and financial topics, and investment and risk professionals struggle to reliably filter out the noise and be sure they’re not missing anything that might have a impact on their portfolio,” said Stephen Marshall, head of State Street Verus. . “Our new solution highlights not only the direct links but also the less obvious indirect links between these news and client portfolios; by shortening the time between when a relevant story is published and when a client can comfortably answer the question: “What is my exposure?”
Verus aggregates coverage from thousands of major global news publications in English and combines machine learning algorithms with portfolio data from truView®, State Street’s end-to-end risk analytics platform, to organize user news feeds. Verus also incorporates insights from a dedicated editorial team of former financial news editors and journalists providing ongoing feedback to the algorithms so that the connections made are relevant and the underlying algorithms improve. continually.
Once direct connections are identified, Verus analyzes third-party relationship data to highlight relevant indirect relationships within the portfolio. Connections are then ranked by a “V Score” based on three main factors:
- Item content: Verus’ algorithms detect if the language of an article has historically shown a high probability of being a high priority news article.
- Risk: Verus examines both the relevant portfolio and security level analyzes calculated by the truView platform – and how they change over time.
- Network connections: Using third-party relationship data, Verus determines the extent to which relevant portfolio holdings have weak or strong common relationships in their respective supply chains, which can be an important indication of systemic risk. .
By combining the relevance of a news story with the portfolio and the security-specific analysis of connected assets, as well as the interdependence of these assets, the V Score provides a multifaceted answer to the questions “Do I need to care?” and ‘How much should I care?’ to help inform future decision-making.
“Managing more than 10% of the world’s tradable securities provides us with a wealth of information,” said Lou Maiuri, global head of State Street Global Exchange. “This informational advantage allows State Street to offer unique insights, and we are constantly finding new and innovative ways to do so to support our customers. Verus offers a new way to help our customers identify and analyze risks and opportunities. »
Click here for more information on State Street Verus.
About State Street Corporation
State Street Corporation (NYSE: STT) is a leading global provider of financial services to institutional investors, including investment services, investment management, and investment research and trading. With $33.3 trillion in assets under custody and administration and $2.7 trillion* in assets under management as of March 31, 2018, State Street operates in more than 100 geographic markets globally, including the United States, in Canada, Europe, the Middle East and Asia. For more information, visit the State Street website at www.statestreet.com.
* Assets under management include assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $36 billion as of March 31, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.
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Expiry date: 31/07/2019